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Want more mutual fund options? Think about Factor Investing


Want more mutual fund options? Think about Factor Investing
Synopsis
AMCs offering funds that focus on unique factors like quality, value, alpha and low volatility
Remember CAPM, or the Capital Asset Pricing Model the bedrock of the science of stock returns that you were taught at B-School? Well, the world has since moved on, and a significant number of ‘factors’ besides just systematic risk are proven to be at play in shaping the ‘yield curve’ on your corpus.
Welcome to the world of ‘factor investing’.
Factors are definitional characteristics value, quality, growth or momentum that are sort of
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Capital Asset Pricing Model , Mutual Funds , Mutual Fund News , Large Cap , Factor Investing , மூலதனம் சொத்து ப்ரைஸிஂக் மாதிரி , பரஸ்பர நிதி , பரஸ்பர நிதி செய்தி , பெரியது தொப்பி , காரணி முதலீடு ,

Finding the right mix between domestic and foreign investments for pension funds


Finding the right mix between domestic and foreign investments for pension funds
Concept of retirement planning. Khongtham / Shutterstock.com
International diversification offers significant advantages, yet some sophisticated investors, including pension funds, do not fully exploit these opportunities. In many cases and to the detriment of returns, large fractions of the portfolios are allocated to domestic securities; the so-called “home-bias.”
If cross-border diversification is as good as advertised, how can we actively encourage it? A key challenge, perhaps surprisingly, is that the longstanding theoretical benchmark to evaluate international portfolios indicates that it is optimal to hold very few domestic assets. According to the Capital Asset Pricing Model (CAPM), the workhorse of modern portfolio theory, the fraction of assets invested domestically should be proportional to the country’s market capitalization relative to global markets. In most developing ....

Capital Asset Pricing Model , மூலதனம் சொத்து ப்ரைஸிஂக் மாதிரி ,